Case Brief
What Happened
The Reserve Bank of India imposed a monetary penalty of ₹50 million on Airtel Payments Bank Limited on March 7, 2018. RBI said the bank contravened the Operating Guidelines for Payments Banks and directions on Know Your Customer (KYC) norms. The action followed complaints and adverse media reports alleging that the bank had opened customer accounts without clear/specific customer consent, as well as a supervisory visit conducted in November 2017. After issuing a show-cause notice and considering the bank’s reply and oral submissions, RBI concluded that the charges of non-compliance were substantiated and warranted penalty under the Banking Regulation Act, 1949.